(Toronto) Sleep Country Canada announced Monday its intention to acquire the Canadian operations of Casper Sleep.
Toronto-based mattress retailer Sleep Country, which also operates Dormes-Vous stores, intends to raise $20.6 million for the Canadian assets of the U.S. company that sells box mattresses.
Sleep Country will receive a $4.5 million marketing transition fee from Casper over the next four years and three-year guarantees that will convert to a 1% equity interest in Casper.
“Casper has invested more than $1 billion worldwide to build an iconic brand that reinforces the importance of a good night’s sleep for everyone,” said Stewart Schaefer, Sleep Country president and CEO.
“We look forward to growing the Casper brand in Canada by making the newest member of our family of brands seamlessly accessible to all Canadians and exceeding the evolving expectations of our customers,” Schaefer continued in a statement.
He said he is excited to work with Casper as the company continues to execute its long-term strategic growth plan.
Emily Arrell, CEO of Casper, said sharing best practices with Casper will help accelerate Sleep Country’s growth in omnichannel retail.
Sleep Country said it has invested $20 million in five-year convertible notes, which will convert to about 5% of Casper’s shares.
The number of e-commerce companies selling compressed and rolled mattresses in boxes that are delivered directly to consumers has increased in recent years.
Sleep Country acquired mattress company Andy in 2018 for $88.7 million.
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